Bookkeeping Principles

February 13, 2017

7 Biggest Business Bookkeeping Problems

No one ever said running a business was easy, but most business owners don’t realize that one of the most difficult aspects of their job will be bookkeeping headaches. Virtual accounting and bookkeeping services can solve some of the biggest problems for fast-growing businesses with revenue between $2 and $25 million. Let’s look at the top 7 reasons business owners call upon a virtual firm for their accounting and bookkeeping needs: 1. “I never get the financial reports I need, when I need them.” As a business owner, you wouldn’t think looking for timely and accurate bookkeeping is asking for a lot. But, if you’ve been using an in-house bookkeeper who doesn’t know their job or the bookkeeping software as […]
September 19, 2016

Bookkeeping Practices That Will Save You a Lot of Trouble

Melbourne provides a great business setting for entrepreneurs. The economy is strong, thanks to its huge and diverse population and its friendly affiliations with local and international communities. If you are thinking of setting up a business in this city or perhaps you already have one off the ground, then you understand the need for efficient bookkeeping. Bookkeeping may be a mundane task in business management but its importance cannot be undermined. Simply put, good bookkeeping practices enable steady cash flow and good relationships with your employees, customers, vendors and the ATO or Australian Taxation Office. The best way to make sure your financial records and transactions are organized and your system efficient is to hire a skilled accountant or […]
March 25, 2016

Awesome Bookkeeping Practices for Entrepreneurs

We hear you. You’re not exactly looking forward to handling the financial aspects of your business, but of course you understand how significant they are in keeping your venture secure and profitable. If you’re the kind of entrepreneur who loses his or her way in money matters easily, start with good bookkeeping practices. Bookkeeping includes a myriad of tasks like managing payroll, purchasing equipment, monitoring supplies and issuing invoices. Even if you have a bookkeeper Melbourne in your employ, it’s important to stay on top of things and know how to lead your staff. Here are ways to make this job a breeze. Stay organized. You can’t guess how such mundane practices of keeping receipts, tracking receivables and documenting bookkeeping […]
February 15, 2016

Double Entry Bookkeeping Principle

The double entry bookkeeping principle is profoundly important in the world of accounting. It is essential that students of accounting gain an understanding, from the outset, of this principle that is more than 500 years old. This best way to explain the double entry bookkeeping principle is to give an example of transactions from the books of the imaginary organisation called Lots of Fun Pty Ltd. Example 1: Lots of Fun Pty Ltd purchased a car for $5,000 using a loan from the bank, the two effects are: Lots of Fun Pty Ltd acquires an ASSET worth $5,000 (the car). This is the debit affect. At the same time it also incurs a LIABILITY to the bank of $5,000 (the […]